How access to capital market effect dividend decision?

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Solution

Access to Capital Market
Large and reputed companies generally have easy access to the capital market and, therefore, may depend less on retained earnings to finance their growth. These companies tend to pay higher dividends than the smaller companies. In this way capital market effect dividend decisions.

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Similar questions

What is meant by dividend policy decision ? Explain the following four factors which affect the dividend decision of a company.

(i) Legal constraints
(ii) Stability of earnings
(iii) Access to capital markets
(iv) Taxation policy

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